Leila runs a firm in a perfectly competitive market with


Leila runs a firm in a perfectly competitive market with many other firms. Her short-run cost function is given by C(q) = q2 + 25q + 144 such that MC(q) = 2q + 25. Answer the following questions.

(a) How much is Leila’s fixed cost of running the firm?

(b) If the market price is $75, how much profit will Leila make?

(c) How much output will Leila produce in the long-run? What will the market price be in the long-run?  

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Business Economics: Leila runs a firm in a perfectly competitive market with
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